What is Level 2 & 3 Processing and how can it help you save money?

Visa and Mastercard base their interchange rates to determine the wholesale cost of each card transaction based on acceptance type (face to face, e-commerce, etc.), card type, business type, risk level of each transaction. What this means is that if your processor is familiar with how Visa and Mastercard choose which rates to bill they can optimize your merchant account to have the lowest possible rates.

With Enhanced Payment Systems if your business is B2B (business to business) or B2G (business to government) and you accept payments from business customers, vendors, contractors, or governments/municipalities you can qualify for lower rates on your transaction by upto 1%.

Level 1, Level 2, or Level 3. Level 1 is the highest cost and Level 3 is the lowest cost. The different is pricing can be as high as 1.5% of the volume of each transaction. In order to get the additional savings, you must be able to classify your transactions to Level 2 or 3 otherwise the standards rates will fall into the highest cost category for your business.

How do you get to take advantage of these lower rates?

Enhanced Payment Systems provides you with more sophisticated payment technology through our virtual terminal that captures what Visa & Mastercard require to discount your rate. You need to add additional line items to your transaction such as ship to zip and invoice number plus a few additional steps and you’re on your way to greater savings.

With our software you will have access to the below features and full training on how to properly process your transactions to get the greatest amount of savings. Our platform identifies which transactions benefit from adding Level II and Level III data, intelligently calculating and pre-populating fields required to obtain your discounts.